PARIS--(BUSINESS WIRE)--EOS imaging (Paris:EOSI)(Euronext, FR0011191766 – EOSI - Eligible PEA -
SME), the pioneer in 2D/3D orthopedic medical imaging, today announced
its consolidated results for the six months ended June 30, 2017, as
stated by the Board of Directors on September 7, 2017.

“Our
performance in the first half of 2017 included strong revenue growth in
the EMEA and APAC regions, partially offset by lower sales in North
America where we were implementing a new, reinforced organizational
structure. This impacted our operational and financial performance,
despite the improvement in production and maintenance efficiency.”

First Half 2017 Financial Results

in millions euros

First Half 2017

First Half 2016

Sales

16,46

14,14

Other Income

0,82

1,17

Total Income

17,28

15,31

Direct COGS

(9,03)

(7,63)

Gross Margin

8,25

7,68

as % of sales

45,1%

46,0%

Operating expenses

(10,91)

(9,41)

Operating Income

(2,66)

(1,73)

Financial Income

(1,06)

(0,67)

Net Income

(3,72)

(2,40)

As of June 30, 2017

As of Dec. 31, 2016

Cash

17,6

14,9

Marie Meynadier, Chief Executive Officer of EOS imaging, commented: "Our
performance in the first half of 2017 included strong revenue growth in
the EMEA and APAC regions, partially offset by lower sales in North
America where we were implementing a new, reinforced organizational
structure. This impacted our operational and financial performance,
despite the improvement in production and maintenance efficiency.

EOS imaging solutions are increasingly recognised as a standard of
care, as evidenced by nearly one million patients each year that benefit
from a low-dose EOS scan and comprehensive imaging results, along with
the physicians and healthcare systems that benefit from the platform’s
innovative and effective solutions. Given this positive position in the
market, we decided to accelerate our growth initiatives in the United
States, our most important market and a priority for our company.

We are confident in a rapid return to growth in North America, under
the leadership of Mike Lobinsky, who we recently appointed as President
of the region.

Our initiatives in North America, combined with the positive business
dynamics in the rest of the world, and with our investments in our
product offering, should strongly improve our performance in the short
and medium terms."

First Half 2017 Sales Growth: +16%

In the first half of 2017, the Company generated revenue of €16.5
million, up 16% compared to the first half of 2016. The Company sold 34
EOS® systems during the first half of the year, compared to 28 systems
in the same period last year. Sales of maintenance contracts increased
by 28% to €2.84 million, reflecting the continued growth of the
installed base of EOS systems under contract.

The increase in revenues over the first half of 2017 was driven by
strong sales in the EMEA and APAC regions, partially offset by lower
sales in North America, related to an operational reorganization.

Gross margin for the first half of 2017 was 45.1% of revenues, as
compared to 46.0% during the same period last year. This reflects lower
sales in North America, which represented approximately 35% of revenues
in the period, as compared 54% of revenues in the first half of 2016.
This was partially offset by improved manufacturing costs and
maintenance in the first half of 2017 compared to the same period last
year.

Controlled Increase of Operating Expenses

Operating expenses for the first half of 2017 totaled €10.9 million, up
16% compared to the same period last year and in-line with the Company’s
revenue growth in the period. These expenses are slightly below their
level in the second half of 2016.

Operating loss for the first half of 2017 was €2.7 million, compared
with an operating loss of €1.7 million in the same period last year (and
of €2.8 million in the second half of 2016). This reflects the decrease
in gross margin and a one-time decline in other income (CIR and
subsidies).

Net financial expense for the first half of 2017 totaled €1.1 million,
compared to €0.7 million in the same period last year, reflecting
interest expense on the Company’s €15 million debt financing, the last
tranche of which was drawn in June 2016.

Net loss for the first half of 2016 was €3.7 million, compared with a
net loss of €2.4 million in the same period last year (and €2.8 million
in the second half of 2016).

The Company had 152 employees at June 30, 2017, compared with 132 at
December 31, 2016.

Cash Position and Balance Sheet: Improving Equity and Cash Positions

The Company’s cash position at June 30, 2017 was €17.6 million, compared
with €14.9 million at December 31, 2016. Equity at June 30, 2017 was
€27.3 million, compared with €22.8 million at December 31, 2016. This
includes 2,204,844 new shares issued primarily in a private placement
completed in April 2017 but coming also from the Equity Line Société
Générale and from the exercise of options.

First Half of 2017 Financial Report

EOS imaging’s first half of 2017 financial report can be downloaded from
its web site at www.eos-imaging.com
by selecting Documentation, then Financial reports from the Investors
menu.

EOS imaging designs, develops, and markets EOS®, an
innovative medical imaging system dedicated to osteo-articular
pathologies and orthopaedics, as well as associated solutions. The
Company is authorized to market in 51 countries, including the United
States (FDA), Japan and the European Union (EC). The Group posted 2016
revenues of €30.8 million and employed 132 people at December 2016,
including an R&D team of 43 engineers. The Group is based in Paris and
has five subsidiaries in Besançon (France), Cambridge (Massachusetts),
Montreal (Canada), Frankfurt (Germany) and Singapore.